The online scheme targeting PPE, industrial and electronic equipment companies in Canada, the United States and Australia, has seen the suspects impersonating various commercial companies, including “Clean Harbors”, a large North American environmental, energy and industrial service provider.
The suspects would then contact various suppliers using altered emails, the names of associated company executives and illegally obtained credit reference information to fraudulently obtain shipments of various equipment including the highly sought-after N95 masks. The equipment was then shipped to warehouses across Canada and the United States by the suspects, who are believed to be operating from Nigeria and London, UK.
It is alleged that the suspects would then coordinate an online pick-up from a courier company using compromised courier accounts, and have the shipment delivered to England, where it was then moved to companies with exporting connections to Nigeria.
“Many companies around the world are dealing with various challenges right now just trying to financially stay afloat during this pandemic,” stated Det. Jason Lapointe, of the EPS Economic Crimes Section. “Then they find themselves under attack by criminals from abroad that are attempting to fraudulently acquire various equipment, including PPE, destined to help those who are in desperate need of it. It’s unconscionable really.”
In mid-March, ECS investigators received information that a Leduc company had been targeted. The local electronics company had received a purchase order worth approximately $18,000 for two-way radios. The order was initially placed by email through Clean Harbors, a vendor known to the local company through previous business transactions.
It was reported to police that the Leduc equipment company then received a subsequent email supposedly from Clean Harbors requesting that the shipment of two-way radios be re-directed to a location in Calgary. Representatives with the local company became suspicious and contacted Clean Harbors to clarify the situation, which confirmed their suspicions that they were being defrauded by someone impersonating an executive with Clean Harbors. As a result, representatives from the Leduc company were able to stop the shipment from being delivered.
In early April, an Edmonton telecommunications equipment supplier fell victim to this scam after a shipment of equipment worth $170,000 was sent to a storage facility in the UK. EPS Economic Crimes Section prevented another $130,000 shipment of equipment made by this same Edmonton company from reaching its final destination, after it was located at a shipment center in Ontario
As an example of this scam’s impact on the current COVID-19 crisis, these same suspects placed orders through two Canadian corporations situated in Quebec and B.C. for $100,000 worth of personal respirators and replacement N95 3M filters. These shipments were located at separate loading facilities, and EPS Economic Crimes Section investigators facilitated the return of these shipments to the respective companies.
The EPS Economic Crimes Section is urging businesses to remain vigilant when dealing with potential clients online.